Betty White passed away recently, just 17 days before turning 100. This shows that death needs to be a part of all financial plans. Many of us now have a real chance of living long because medicine has improved.
If you've saved enough money, it can be a big plus and a reason to party. But the hard truth is that you must have good personal finances if you want to be happy and healthy as you age. Since the end of the income year is coming soon, now is a great time to start planning for a long, happy life.
Most South Africans find it hard to give up hope. We want to be so happy that we will say that a half-full glass remains even after it has been broken, spilled, or stolen. Even the most optimistic South Africans faced the facts about their finances in 2022.
Old Mutual's head of general merchandise savings and revenue marketing, Marius Pretorius, asserts that it is evident that Covid and the weak economy have rendered our society more vulnerable. Individuals from all walks of life have been affected, and many are concerned about their finances, particularly their retirement plans.
The 10X Retirement Fact Report from last year showed that 71% of the people who filled out the survey had no money saved for retirement. The 2021 Old Mutual Savings & Asset Monitor (OMSIM) demonstrated that having good intentions during difficult times is insufficient. Only 6% of the people surveyed said they were following a plan for their retirement.
Nonetheless, 87% of those surveyed by OMSIM last year indicated they had improved their financial habits. Many South Africans have discovered how crucial it is to plan for the future. He gives these six helpful tips to South African taxpayers on how to save for retirement:
1. Use tax deductions and other benefits.
Consider minimizing your yearly tax bill to SARS by taking full advantage of the concession that allows South African taxpayers to deduct up to 27.5% of their tax due or compensation from their annual taxable income for contributions to retirement funds.
You can only save up to R350 000 with this tax break per tax year. To take advantage of this tax reduction for the fiscal year 2021-2022, talk to your financial adviser well before the end of February about what it might mean to deposit more money into your business retirement account or a senior annuity fund.
Also, think about opening a Tax-Free Savings Account (TFSA), which can let you save up to R36,000 a year (or R500,000 over your lifetime) without having to pay taxes on the growth of your investment.
2. Don't get angry or lose your temper.
Talk to a certified financial planner or adviser, preferably a well-known leader in the financial services industry. This will give you peace of mind. They could look at your money in detail and help you devise a good plan. Advisers can advise you on how much you should save for retirement and how to manage your money to pay the least taxes.
3. Make the most of every lucky break.
Look for ways to save money and ways to make money. For instance, if SARS gives you a tax refund, you might want to put the whole thing in a tax-free saving account or unit trust.
4 A strong family works as a unit.
Talk to your family about your priorities and your plan to get their full support and help. Please ensure everyone in the family knows what is most important to the family and what they can and can afford. Find ways to make your money go further and grow.
5. Start saving for retirement as soon as possible and keep doing it as long as possible.
You should start saving and investing for your retirement as soon as possible and keep doing so for as long as possible. If you want your retirement to be financially worry-free, even if you live past your 100th birthday, among the hardest things for many people to start figuring out is how to live well today while postponing gratification such that your retirement years can be economically solvent.
6. Learn about the world
The world of finance is experiencing an enormous amount of change right now, with new ideas and products popping up daily like mushrooms. Keep your mind open to new ideas, but don't make assumptions, no matter how tempting the mushrooms might look. Begin by getting your task done.
